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   Games   
EA will Cut 1500 Jobs. Cost Reduction Plan

Overview about EA’s Near Future Included
Read with Small Text Read with Normal Text Read with Large Text Read with Larger Text  [ » ]  Change Text Contrast 3Dup.com - November 11, 2009 - 13:22
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EA has announced a plan to narrow its product portfolio to provide greater focus on titles with higher margin opportunities.

This action will result in the closure of several facilities and a headcount reduction of approximately 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million.

EA remains committed to delivering high quality games for consumers and leading the industry in the growing digital direct gaming sector.

Highlights
  • EA was the #1 publisher in North America and Europe fiscal year to date, with 21% segment share - up four points. EA had four of the top-ten games in both North America and Europe.
  • Eight EA titles launched this quarter with a Metacritic rating of 80 or above, including: NHL® 10, The Beatles: Rock Band, FIFA 10, Battlefield 1943™, Madden NFL 10, NCAA Football 10, Dead Space™ Extraction, and Need for Speed SHIFT. Calendar year-to-date, EA has 17 titles rated at 80 or above.
  • FIFA 10, with a Metacritic rating of 91 on the Xbox 360® and PlayStation®3, was EA’s strongest European title launch in its history - selling 4.5 million copies in week one.
  • Madden NFL 10 was the #1 title in North America for the quarter, according to NPD.
  • Need for Speed SHIFT, with a 22 point increase in quality as measured by Metacritic, sold over 2.5 million copies in the quarter.
  • Digital non-GAAP net revenue was an all time quarter high at $138 million - up 23 percent year-over-year.
  • EA recently signed five new advertising partners - Johnson & Johnson, Doritos, Apple, Pfizer and Renault -- for $7 million in incremental advertising bookings.
  • EA Mobile, the world’s leading publisher of games for phones, delivered $50 million of non-GAAP net revenue in the quarter - up nine percent year-over-year. EA is the #1 publisher of games on the iPhone with seven of the top 10 games; and #1 on Verizon with eight of the top 10 games.
Acquisition of Playfish
EA has announced that it has acquired Playfish Limited, a leading social games company, for approximately $275 million in cash and approximately $25 million in equity retention arrangements. In addition, the sellers are entitled to up to an additional $100 million in consideration upon the achievement of certain performance milestones. The acquisition accelerates EA’s growth in social entertainment and strengthens its focus on the transition to digital and social gaming.

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